<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND
DEVELOPMENT
MANAGEMENT'S DISCUSSION & ANALYSIS
AND
CONDENSED QUARTERLY FINANCIAL STATEMENTS
DECEMBER 31, 1999
(UNAUDITED)
<PAGE>
CONTENTS
DECEMBER 31, 1999
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS 2
FUNDING RESOURCES 3
NEW LOAN AND HEDGING PRODUCTS 3
YEAR 2000 3
IBRD CONDENSED FINANCIAL STATEMENTS
BALANCE SHEET 4
STATEMENT OF INCOME 5
STATEMENT OF COMPREHENSIVE INCOME 6
STATEMENT OF CHANGES IN RETAINED EARNINGS 6
STATEMENT OF CASH FLOWS 7
NOTES TO FINANCIAL STATEMENTS 8
REVIEW REPORT OF INDEPENDENT ACCOUNTANTS 11
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
This document should be read in conjunction with the International Bank for
Reconstruction and Development's (IBRD) financial statements and management's
discussion and analysis issued for the fiscal year ended June 30, 1999 (FY
1999). IBRD undertakes no obligation to update any forward-looking statements
made in such document.
RESULTS OF OPERATIONS AND FINANCIAL HIGHLIGHTS
For the three and six months ended December 31, 1999 (second quarter FY 2000),
reported net income was $482 million and $899 million, compared with $257
million and $813 million for the respective periods of the prior fiscal year.
Quarter-to-date FY 2000 versus FY 1999
The increase of $225 million in net income for the second quarter of FY 2000,
compared to the second quarter of FY 1999 is predominantly attributable to the
following:
- - An increase in income from loans of $132 million reflects both the impact
of an increased average volume of loans outstanding, as well as increased
average rates. The higher rates are due to the effect of a greater volume
of outstanding Special Structural Adjustment Loans (SSAL), which are priced
higher than most other loan instruments, at 400 basis points over LIBOR; as
well as higher average rates on the Single Currency Pool Loans (SCP).
Reduced interest waivers also contributed to higher income on loans. These
increases were partially offset by the reduction in income resulting from
the lower volume of higher yielding fixed rate loans.
- - A decrease of $91 million in the provision for loan losses expense results
from the lower level of net disbursement activity experienced thus far in
FY 2000.
The net return on average interest-earning assets for the second quarter of FY
2000 was 1.29%, compared to 0.70% for the second quarter of FY 1999. This
increase in the return reflects the higher earnings on loan assets described
above, and the effect of a reduced expense for loan loss provisioning. Further
improvements in this indicator show the effects of increased investment returns
resulting from the relatively higher USD LIBOR rate environment this quarter
versus the same period last fiscal year. Additionally, decreasing borrowings
costs show the effects of the maturing of higher priced fixed-rate debt, which
more than offset any increase in costs resulting from interest rate resets on
variable rate debt in an increasing interest rate environment.
Year-to-date FY 2000 versus FY 1999
Year-to-date net income for the six-month period ended December shows an
increase of approximately 11%. The fiscal year-to- date net return on average
interest earning assets for FY 2000 and FY 1999 was 1.19% and 1.15%,
respectively, compared to 1.05% for the fiscal year ended June 30, 1999.
While a comparison of year-to- date returns for FY 2000 and FY 1999 does not
reveal a significant change in the net results, certain individual components
warrant highlighting:
- - Income from cash and investments has declined significantly, by $170
million. This reduction is primarily the result of the one-time gain
realized in the first quarter of FY 1999 of $237 million on the liquidation
of the held to maturity portfolio. This reduction was partially offset by
the slightly higher returns earned on the trading portfolio during FY 2000,
as a result of the increasing interest rate environment which allowed
opportunities for higher yielding investments, particularly in the USD
LIBOR markets. A significant portion of the investment portfolio was held
in U.S. dollars during FY2000.
- - Borrowing costs increased $137 million; however the average cost of
borrowings after swaps decreased 20 basis points, due to the maturity of
higher cost debt.
- - Loan income, including interest and charges, showed an increase of $299
million. As described in the quarter-to- date discussion, the increased
return on loans reflects the full effect of the higher outstanding balance
of higher priced SSALs; the effect of SCPs resetting to higher rates for
the full six months of FY 2000, versus the partial effect experienced in FY
1999; and the improvement in returns on loans achieved through other
changes in loan pricing, including the charging of front-end fees and
reduced interest waivers.
- - A reduction of $105 million in the amount of provision for loan losses
expense, compared to the same period last year, contributed additional net
income. This decline reflects the slower pace of disbursements thus far
this year.
2 IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: DECEMBER 31, 1999
<PAGE>
The following are highlights of IBRD's financial performance:
<TABLE>
<CAPTION>
FY 2000 FY 1999 FY 2000 FY 1999 FY 1999
In millions of U.S. dollars 2nd Qtr 2nd Qtr Year to Date Year to Date Full Year
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net interest income $ 709 $ 558 $ 1,329 $ 1,337 $ 2,483
Average interest-earning assets $ 148,297 $ 145,472 $ 149,956 $ 140,164 $144,138
Return on average loans 6.75% 6.59% 6.67% 6.58% 6.58%
Return on average cash and investments 5.65% 5.02% 5.39% 7.08% 6.01%
Cost of average borrowings, after swaps 5.74% 5.95% 5.77% 5.97% 5.92%
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
FUNDING RESOURCES
EQUITY
IBRD's subscribed capital at the end of the second quarter of FY 2000 was
$188,606 million, of which $11,419 million had been paid in. IBRD's equity also
included $17,945 million of retained earnings.
At December 31, 1999 the equity capital-to-loans ratio was 20.53% compared to
20.67% at December 31, 1998.
NEW LOAN AND HEDGING PRODUCTS
On September 1, 1999, IBRD introduced a fixed-spread loan product available for
loans for which the invitation to negotiate is issued on or after September 1,
1999. As of December 31, 1999, five fixed-spread loans had been approved
totalling $1,693 million equivalent.
In addition to the new loan product, IBRD also plans to begin offering hedging
products that would be linked to borrowers' existing IBRD loans, providing them
with additional instruments by which to manage currency, interest rate, and on a
case- by-case basis, commodity price risks. These hedging products are expected
to be available during the third quarter of FY 2000.
YEAR 2000
During this quarter, IBRD continued with its Year 2000 preparations to ensure
that any disruptions to the most critical operating systems resulting from the
"rollover" would be minimal. In mid-December tests planned for the rollover
weekend to check the computing and communications infrastructure, as well as
business applications were validated. Beginning on December 30th, full backups
of all data and files were initiated and normal business applications processing
was suspended. In addition to work at headquarters, extensive preparations were
also made to ensure that individual country offices would be able to continue
normal operations on the first business day of the new year. All testing was
successfully completed as planned and normal business operations resumed as
scheduled. To date there has been no indication that any Year 2000 problems have
occured within any critical applications.
Thus far, there have been no indications from any borrowers that they have
experienced any serious disruptions to national infrastructure or public
administration due to Year 2000 problems which would affect their ability to
continue to service IBRD loans.
IBRD MANAGEMENT'S DISCUSSION AND ANALYSIS: DECEMBER 31, 1999 3
<PAGE>
BALANCE SHEET
Expressed in millions of U.S. dollars
<TABLE>
<CAPTION>
December 31, 1999 June 30, 1999
(Unaudited)
----------------- -----------------
<S> <C> <C>
ASSETS
Due from banks $ 700 $ 697
Investments-Trading 25,365 30,345
Securities purchased under resale agreements-Trading -- 6
Nonnegotiable, noninterest-bearing demand obligations on account of
subscribed capital 1,784 1,846
Receivable from currency swaps
Investments-Trading 11,145 11,420
Borrowings 72,186 67,592
Loans outstanding-Note B
Total loans 167,911 168,600
Less undisbursed balance 47,535 51,372
------------- -------------
Loans outstanding 120,376 117,228
Less accumulated provision for loan losses 3,660 3,560
------------- -------------
Loans outstanding net of accumulated provision 116,716 113,668
Other assets 5,332 5,234
------------- -------------
Total assets $ 233,228 $ 230,808
============= =============
LIABILITIES
Borrowings
Short-term $ 5,785 $ 5,328
Medium- and long-term 107,707 110,411
Securities sold under repurchase agreements and payable for cash
collateral received-Trading 289 102
Payable for currency swaps
Investments-Trading 11,879 11,501
Borrowings 73,608 70,484
Payable for Board of Governors-approved transfers-Note C 1,023 607
Other liabilities 4,291 4,354
------------- -------------
Total liabilities 204,582 202,787
------------- -------------
EQUITY
Capital stock-Authorized (1,581,724 shares-December 31, 1999
and June 30, 1999)
Subscribed (1,563,443 shares-December 31, 1999; 1,560,243 shares-
June 30, 1999) 188,606 188,220
Less uncalled portion of subscriptions 177,187 176,825
------------- -------------
11,419 11,395
Amounts to maintain value of currency holdings of paid-in capital stock (344) (453)
Payments on account of pending subscriptions 7 7
Retained earnings (see Statement of Changes in Retained Earnings, Note C) 17,945 17,709
Accumulated other comprehensive income-Note D (381) (637)
------------- -------------
Total equity 28,646 28,021
------------- -------------
Total liabilities and equity $ 233,228 $ 230,808
============= =============
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
4 IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999
<PAGE>
STATEMENT OF INCOME
Expressed in millions of U.S. dollars
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
(Unaudited) (Unaudited)
----------------------- ---------------------
1999 1998 1999 1998
------------ ---------- ------------ --------
<S> <C> <C> <C> <C>
Income
Loans--Note B $ 2,079 $ 1,947 $ 4,081 $ 3,782
Investments
Trading 363 360 759 672
Held-to-maturity -- -- -- 284
Securities purchased under resale agreements 5 3 6 9
Income from Staff Retirement Plan and other 43 65 86 133
postretirement benefits plans
Other 33 $ 49 48 56
------------ ---------- ------------ --------
Total income 2,523 2,424 4,980 4,936
------------ ---------- ------------ --------
Expenses
Borrowings 1,736 1,747 3,515 3,378
Securities sold under repurchase agreements and 2 5 2 32
payable for cash collateral received
Administrative 247 266 456 495
Contributions to special programs 32 33 63 63
Provision for loan losses-Note B 24 115 45 150
Other -- 1 -- 5
------------ ---------- ------------ --------
Total expenses 2,041 2,167 4,081 4,123
------------ ---------- ------------ --------
Net Income $ 482 $ 257 $ 899 $ 813
============ ========== ============ ========
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999 5
<PAGE>
STATEMENT OF COMPREHENSIVE INCOME
Expressed in millions of U.S. dollars
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
(Unaudited) (Unaudited)
------------------------------- ---------------------------------
1999 1998 1999 1998
-------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Net income $ 482 $257 $ 899 $ 813
Other comprehensive income-Note D
Currency translation adjustments (22) 437 256 812
-------------- --------------- ---------------- ---------------
Total other comprehensive income (22) 437 256 812
-------------- --------------- ---------------- ---------------
Comprehensive income $ 460 $694 $ 1,155 $1,625
============== =============== ================ ===============
</TABLE>
STATEMENT OF CHANGES IN RETAINED EARNINGS
Expressed in millions of U.S. dollars
<TABLE>
<CAPTION>
Six Months
Ended December 31
(Unaudited)
-----------------------------
1999 1998
-------------- ------------
<S> <C> <C>
Retained earnings at beginning of the fiscal year $ 17,709 $ 16,733
Board of Governors-approved transfers--Note C (663) (542)
Net income for the period 899 813
-------------- -------------
Retained earnings at end of the period $ 17,945 $ 17,004
============== =============
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
6 IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999
<PAGE>
STATEMENT OF CASH FLOWS
Expressed in millions of U.S. dollars
<TABLE>
<CAPTION>
Six Months Ended
December 31
(Unaudited)
------------------------------
1999 1998
----------- ----------
<S> <C> <C>
Cash flows from lending and investing activities
Loans
Disbursements $ (6,477) $ (9,547)
Principal repayments and prepayments 5,094 4,983
Investments: Held-to-maturity
Purchases of securities and repayments of securities sold under
repurchase agreements -- (13,266)
Maturities of securities and proceeds from securities sold under
repurchase agreements -- 13,426
Proceeds from sale of held-to-maturity portfolio -- 1,389
----------- ----------
Net cash used in lending and investing activities (1,383) (3,015)
----------- ----------
Cash flows used for payments for Board of Governors-approved transfers (265) (9)
Cash flows from financing activities
Medium- and long-term borrowings
New issues 5,988 12,606
Retirements (11,477) (6,400)
Net capital stock transactions 76 133
Other financing activities 97 (1,195)
----------- ----------
Net cash (used in) provided by financing activities (5,316) 5,144
----------- ----------
Cash flows from operating activities
Net income 899 813
Adjustments to reconcile net income to net cash provided by operating
activities
Depreciation and amortization 433 291
Income from Staff Retirement Plan and other postretirement benefits
plans (86) (133)
Provision for loan losses 45 150
Net changes in other assets and liabilities (110) 196
Gain on sale of held-to-maturity portfolio -- (237)
----------- ----------
Net cash provided by operating activities 1,181 1,080
----------- ----------
Effect on liquid investments due to decrease in net assets associated with
other postretirement benefits -- 650
Effect of exchange rate changes on unrestricted cash and liquid investments 25 325
----------- ----------
Net (decrease) increase in unrestricted cash and liquid investments (5,758) 4,175
Unrestricted cash and liquid investments at beginning of the fiscal year 30,122 23,505
----------- ----------
Unrestricted cash and liquid investments at end of the period $ 24,364 $ 27,680
=========== ==========
Composed of
Investments held in trading portfolio 25,365 28,951
Other (1,001) (1,271)
----------- ----------
24,364 27,680
=========== ==========
Supplemental disclosure
Increase (decrease) in ending balances resulting from exchange rate
fluctuations
Loans outstanding $ 1,765 $ 5,730
Investments: Held-to-maturity -- 13
Borrowings 2,500 6,243
Currency swaps-Borrowings (1,203) (1,564)
</TABLE>
The Notes to Financial Statements are an integral part of these Statements.
IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999 7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NOTE A--FINANCIAL INFORMATION
The unaudited condensed financial statements should be read in conjunction with
the June 30, 1999 financial statements and the notes included therein. A review
of the interim financial information for the six months ended December 31, 1999
and 1998, was performed by the International Bank for Reconstruction and
Development's (IBRD) independent public accountants in accordance with standards
established by the American Institute of Certified Public Accountants and by the
International Auditing Practices Committee of the International Federation of
Accountants. In the opinion of management, the condensed financial statements
reflect all adjustments necessary for a fair presentation of IBRD's financial
position and results of operations. The results of operations for the first six
months of the current fiscal year are not necessarily indicative of results that
may be expected for the full year. Certain reclassifications of the prior
period's information have been made to conform to the current period's
presentation.
NOTE B--LOANS AND GUARANTEES
FINANCIAL TERMS OF LOANS
Effective September 1, 1999, IBRD introduced fixed-spread loans. These loans
have an interest rate based on LIBOR plus a spread that will be fixed for the
life of the loan. The spread is currently 55 basis points for U.S. dollar and
euro, and 40 basis points for Japanese yen denominated loans. A commitment
charge premium of 10 basis points over the standard 75 basis points charged on
other IBRD loans will be included for the first four years from the date the
commitment charge begins to accrue.
WAIVERS OF LOAN INTEREST AND COMMITMENT CHARGES
For payment periods beginning during the fiscal year ending June 30, 2000, an
interest waiver of five basis points on disbursed and outstanding loans to
eligible borrowers is in effect, except that for new loans where the invitation
to negotiate was issued on or after July 31, 1998, which carry a 75 basis point
lending spread, the interest waiver is 25 basis points. A similar waiver was in
effect for the fiscal year ended June 30, 1999. For the three and six months
ended December 31, 1999, the effect of this waiver was to reduce Net Income by
$14 million and $28 million, respectively, compared to $18 million and $72
million, for the respective fiscal year 1999 periods.
A one-year commitment charge waiver of 50 basis points is in effect on
undisbursed loans to all borrowers for all payment periods commencing in the
fiscal year ending June 30, 2000. A similar waiver of 50 basis points was in
effect for the fiscal year ended June 30, 1999. For the three and six months
ended December 31, 1999, the effect of the commitment charge waiver was to
reduce Net Income by $57 million and $117 million, respectively, compared to $55
million and $107 million for the respective fiscal year 1999 periods.
OVERDUE AMOUNTS
At December 31, 1999, no loans payable to IBRD, other than those referred to in
the following paragraph, were overdue by more than three months.
At December 31, 1999, loans made to or guaranteed by certain member countries
and the Federal Republic of Yugoslavia (Serbia and Montenegro) with an aggregate
principal balance outstanding of $2,081 million ($2,053 million--June 30,
1999), of which $1,297 million ($1,249 million--June 30, 1999) was overdue, were
in nonaccrual status. At such date, overdue interest and other charges in
respect of these loans totaled $1,050 million ($1,011 million--June 30, 1999).
If these loans had not been in nonaccrual status, income from loans for the
three and six months ended December 31, 1999 would have been higher by $9
million and $27 million, respectively, compared to $17 million and $31 million
for the respective fiscal year 1999 periods. A summary of coun tries with loans
in nonaccrual status follows:
8 IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999
<PAGE>
<TABLE>
<CAPTION>
In millions
- ---------------------------------------------------------------------------------------------------------------
December 31, 1999
-----------------------------------------------------------------
Principal Principal, interest Nonaccrual
Borrower outstanding and charges overdue since
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WITH OVERDUES
Congo, Democratic Republic of $ 82 $ 107 November 1993
Congo, Republic of 68 47 November 1997
Iraq 40 68 December 1990
Liberia 137 291 June 1987
Sudan 3 2 January 1994
Syrian Arab Republic 41 155(a) February 1987
Yugoslavia, Federal Republic of (Serbia 1,132 1,677
and Montenegro)
Total 1,503 2,347 September 1992
WITHOUT OVERDUES
Bosnia and Herzegovina 578 -- September 1992
--------- --------
TOTAL $ 2,081 $ 2,347
========= ========
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
a. Represents interest and charges overdue.
During fiscal year 1999 Sudan reached an understanding with IBRD and the
International Development Association (IDA) under which Sudan has agreed to make
regular monthly payments of $1 million commencing in July 1999. These payments
are being applied first to IBRD arrears and then to arrears with IDA.
The average recorded investment in nonaccruing loans during the three and six
months ended December 31, 1999 was $2,087 million and $2,078 million, respec
tively , compared to $2,125 million and $2,090 million for the respective fiscal
year 1999 periods.
During the six months ended December 31, 1999 and 1998, no loans came out of
nonaccrual status.
ACCUMULATED PROVISION FOR LOAN LOSSES
Changes to the Accumulated Provision for Loan Losses for the six months ended
December 31, 1999 and for the fiscal year ended June 30, 1999 are summarized
below:
<TABLE>
<CAPTION>
In millions
- ---------------------------------------------------------
December 31 June 30
--------------- ------------
<S> <C> <C>
Balance, beginning of
the fiscal year $ 3,560 $ 3,240
Provision for loan losses 45 246
Translation adjustment 55 74
------------ ------------
Balance, end of the
period $ 3,660 $ 3,560
============ ============
- ---------------------------------------------------------
</TABLE>
Of the Accumulated Provision for Loan Losses of $3,660 million ($3,560
million--June 30, 1999), $700 million is attributable to the nonaccruing loan
portfolio at December 31, 1999 ($700 million--June 30, 1999).
GUARANTEES
Guarantees of $2,089 million at December 31, 1999 ($1,973 million--June 30,
1999) were not included in reported loan balances. At December 31, 1999, $485
million of these guarantees were subject to call ($466 million--June 30, 1999).
FIFTH DIMENSION PROGRAM
Under the Fifth Dimension Program established by IDA in September 1988, a
portion of principal repayments to IDA are allocated on an annual basis to
provide supplementary IDA credits to IDA-eligible countries that are no longer
able to borrow on IBRD terms, but have outstanding IBRD loans approved prior to
September 1988 and have in place an IDA-supported structural adjustment program.
At December 31, 1999, IDA had approved credits of $1,625 million ($1,623
million--June 30, 1999) under this program from its inception, of which $1,606
million ($1,604 million--June 30, 1999) had been disbursed to the eligible
countries.
SEGMENT REPORTING
Based on an evaluation of IBRD's operations, management has determined that IBRD
has only one reportable segment.
For the six months ended December 31, 1999, loans to two countries individually
generated in excess of 10 percent of loan income. Loan income from these two
countries was $453 million and $427 million, respectively.
IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999 9
<PAGE>
NOTE C--RETAINED EARNINGS, ALLOCATIONS AND TRANSFERS
Retained Earnings was comprised of the following elements at December 31, 1999
and June 30, 1999:
<TABLE>
<CAPTION>
In millions
- ------------------------------------------------------
December 31 June 30
---------------- -----------
<S> <C> <C>
Special Reserve $ 293 $ 293
General Reserve 16,109 15,409
Pension Reserve 549 294
Surplus 95 195
Unallocated Net Income 899 1,518
------------- -----------
Total $ 17,945 $ 17,709
============= ===========
- ------------------------------------------------------
</TABLE>
On July 29, 1999, the Executive Directors allocated $700 million of the net
income earned in the fiscal year ended June 30, 1999 to the General Reserve and
$255 million to the Pension Reserve, representing the difference between actual
funding of the Staff Retirement Plan (SRP) and its accounting income for the
fiscal year 1999.
On September 30, 1999, the Board of Governors approved the following transfers
out of Unallocated Net Income: an amount equivalent to $273 million in SDRs
(valued at June 30, 1999) to IDA, $200 million to the Heavily Indebted Poor
Countries (HIPC) Debt Initiative Trust Fund, $60 million to the Trust Fund for
Gaza and West Bank, and $30 million for capacity building in Africa. In
addition, the Board of Governors approved the following transfers out of
Surplus: $75 million in SDRs (valued at June 30, 1999) to IDA and $25 million
for emergency rehabilitation assistance for Kosovo. Of the total amount of these
transfers by IBRD to IDA ($348 million in SDRs valued at June 30, 1999) $300
million is to be drawn down in fiscal year 2005; the remaining $48 million was
transferred in October 1999 as a reimbursement of IDA's share of the fiscal year
1999 cost of implementing the Strategic Compact of IBRD and IDA.
At December 31, 1999, the unpaid balances of all of the above-mentioned
Board-approved transfers have been included in Payable for Board of
Governors-approved Transfers on the balance sheet.
During December 1999, the Executive Directors approved a resolution recommending
that the Board of Governors authorize a transfer out of surplus of $10 million
to the Trust Fund for East Timor. This transfer is pending action by the Board
of Governors.
NOTE D--COMPREHENSIVE INCOME
For IBRD, comprehensive income comprises currency translation adjustments and
net income. These items are presented in the Statement of Comprehensive Income.
The following table presents the changes in Accumulated Other Comprehensive
Income balances for the six months ended December 31, 1999 and 1998:
<TABLE>
<CAPTION>
In millions
- --------------------------------------------------------
Accumulated Other
Comprehensive Income(a)
----------------------------------
1999 1998
--------------- ----------------
<S> <C> <C>
Balance, beginning
of the fiscal year $ (637) $ (960)
Changes from
period activity 256 812
------------- ----------------
Balance, end of
the period $ (381) $ (148)
============= ================
-----------------------------------------------------
</TABLE>
a. The total accumulated other comprehensive income represents the
cumulative translation adjustment.
10 IBRD CONDENSED FINANCIAL STATEMENTS: DECEMBER 31, 1999
<PAGE>
DELOITTE TOUCHE
TOHMATSU
(International Firm)
- -------------------- ----------------------------------------
555 12th Street NW
Washington, DC
President and Board of Governors
International Bank for Reconstruction and Development
We have reviewed the accompanying condensed balance sheet of the
International Bank for Reconstruction and Development (IBRD) as of December
31, 1999, and the related condensed statements of income, comprehensive
income, changes in retained earnings, and cash flows for the three-month and
six-month periods ended December 31, 1999 and 1998. These financial
statements are the responsibility of IBRD's management.
We have conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants and the International
Auditing Practices Committee of the International Federation of Accountants.
A review of interim financial information consists principally of applying
analytical procedures to financial data and of making inquiries of persons
responsible for financial and accounting matters. It is substantially less in
scope than an audit conducted in accordance with auditing standards generally
accepted in the United States of America or with International Standards on
Auditing, the objective of each is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such
an opinion.
Based on our review, we are not aware of any material modifications that
should be made to such condensed financial statements for them to be in
conformity with accounting principles generally accepted in the United States
of America and with International Accounting Standards.
We have previously audited, in accordance with auditing standards generally
accepted in the United States of America and with International Standards on
Auditing, the balance sheet, including the summary statement of loans and the
statement of subscriptions to capital stock and voting power, of IBRD as of
June 30, 1999, and the related statements of income, comprehensive income,
changes in retained earnings, and cash flows for the fiscal year then ended
(not presented herein); and in our report dated July 28, 1999, we expressed
an unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed balance sheet as of June
30, 1999 is fairly stated, in all material respects, in relation to the
balance sheet from which it has been derived.
/s/ Deloitte Touche Tohmatsu (International Firm)
January 31, 2000
----------------------------------------------
Beijing London Mexico City Moscow New York
Paris Tokyo Toronto
<PAGE>
<TABLE>
<CAPTION>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABILITY RISK SYSTEM (TALRS)
SEC REPORT--CHANGES IN BORROWINGS
BORROWINGS (MLT) OCTOBER 01, 1999 THRU DECEMBER 31, 1999
- ----------------------------------------------------------------------------------------------------------------------------------
CUR- EXTERNAL CURRENCY US$ SETTLEMENT MATURITY
BORROWING TYPE DESCRIPTION TRADE ID RENCY ID AMOUNT EQUIVALENT DATE DATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
New Borrowings
MTBOC
Australian Dollar
- --------------------------------
BOND/SELL AUD/IBRD/0503AUD05.50 0000004019 AUD 250,000,000 162,625,000 26-Oct-1999 14-May-2003
BOND/SELL AUD/IBRD/1102AUD05.70 0000004124 AUD AUD0818GDI01 140,000,000 89,635,000 10-Nov-1999 12-Nov-2002
-----------
Total By Currency 252,260,000
-----------
Euro Currency
- --------------------------------
BOND/SELL EUR/IBRD/1102EURSTR 0000004017 EUR 50,000,000 52,550,000 04-Nov-1999 04-Nov-2002
-----------
Total By Currency 52,550,000
-----------
Pound Sterling
- --------------------------------
BOND/SELL GBP/IBRD/0621GBP05.40 0000004158 GBP GBP0735GDI05 75,000,000 120,052,500 07-Dec-1999 07-Jun-2021
BOND/SELL GBP/IBRD/0621GBP05.40 0000004160 GBP GBP0735GDI06 50,000,000 80,035,000 07-Dec-1999 07-Jun-2021
BOND/SELL GBP/IBRD/1228GBP04.87 0000004164 GBP GBP0774GDI02 50,000,000 80,035,000 07-Dec-1999 07-Dec-2028
-----------
Total By Currency 280,122,500
-----------
Japanese Yen
- --------------------------------
BOND/SELL JPY/IBRD/1014JPYSTR 0000004013 JPY 1,000,000,000 9,409,108 25-Oct-1999 24-Oct-2014
BOND/SELL JPY/IBRD/1019JPYSTR 0000004014 JPY 1,000,000,000 9,409,108 25-Oct-1999 25-Oct-2019
BOND/SELL JPY/IBRD/1119JPYSTR01 0000004106 JPY 1,000,000,000 9,527,438 08-Nov-1999 08-Nov-2019
BOND/SELL JPY/IBRD/1114JPYSTR 0000004112 JPY 1,500,000,000 14,131,612 10-Nov-1999 10-Nov-2014
BOND/SELL JPY/IBRD/1111JPYSTR 0000004120 JPY 1,500,000,000 14,283,674 15-Nov-1999 15-Nov-2011
BOND/SELL JPY/IBRD/1115JPYSTR 0000004021 JPY 7,000,000,000 66,225,166 18-Nov-1999 17-Nov-2015
BOND/SELL JPY/IBRD/1115JPYSTR 0000004104 JPY 3,000,000,000 28,382,214 18-Nov-1999 17-Nov-2015
BOND/SELL JPY/IBRD/1119JPYSTR02 0000004118 JPY 4,500,000,000 42,573,321 18-Nov-1999 17-Nov-2019
BOND/SELL JPY/IBRD/0914JPYSTR01 0000004154 JPY 1,000,000,000 9,505,252 24-Nov-1999 24-Sep-2014
BOND/SELL JPY/IBRD/1119JPYSTR03 0000004156 JPY 3,000,000,000 28,515,755 24-Nov-1999 24-Nov-2019
BOND/SELL JPY/IBRD/0319JPYSTR 0000004166 JPY JPY GDIF 176 1,000,000,000 9,721,007 20-Dec-1999 20-Mar-2019
-----------
Total By Currency 241,683,654
-----------
United States Dollar
- --------------------------------
BOND/SELL USD/IBRD/1002USDSTR 0000004011 USD 60,000,000 60,000,000 18-Oct-1999 18-Oct-2002
BOND/SELL USD/IBRD/1014USDSTR 0000004020 USD 55526IB 30,000,000 30,000,000 25-Oct-1999 27-Oct-2014
BOND/SELL USD/IBRD/1006USDSTR 0000004024 USD 10,000,000 10,000,000 25-Oct-1999 25-Oct-2006
BOND/SELL USD/IBRD/1106USDSTR 0000004116 USD SWAPT55601IB 10,000,000 10,000,000 09-Nov-1999 09-Nov-2006
-----------
Total By Currency 110,000,000
-----------
-----------
Total 936,616,154
-----------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABILITY RISK SYSTEM (TALRS)
SEC REPORT--CHANGES IN BORROWINGS
BORROWINGS (MLT) OCTOBER 01, 1999 THRU DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
CUR- EXTERNAL CURRENCY US$ SETTLEMENT MATURITY
BORROWING TYPE DESCRIPTION TRADE ID RENCY ID AMOUNT EQUIVALENT DATE DATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Maturing Borrowings
MTBOC
Australian Dollar
- --------------------------------
BOND/SELL AUD/IBRD/1099AUD07.50 0000000038 AUD AUD0017MLT01 200,000,000 129,650,000 16-Oct-1995 18-Oct-1999
-------------
Total By Currency 129,650,000
-------------
Swiss Franc
- --------------------------------
BOND/SELL CHF/IBRD/1199CHF06.00 0000000071 CHF CHF0218MLT01 100,000,000 64,476,611 16-Nov-1989 16-Nov-1999
BOND/SELL CHF/IBRD/1199CHF06.25 0000000078 CHF CHF0238MLT01 500,000,000 323,394,347 11-Nov-1992 11-Nov-1999
BOND/SELL CHF/IBRD/1099CHF05.50 0000000081 CHF CHF0243MLT01 200,000,000 133,609,460 27-Oct-1994 27-Oct-1999
-------------
Total By Currency 521,480,418
-------------
Deutsche Mark
- --------------------------------
BOND/SELL DEM/IBRD/1099DEM07.25 0000000125 DEM DEM0284MLT01 2,000,000,000 1,086,802,025 13-Oct-1994 13-Oct-1999
BOND/SELL DEM/IBRD/1099DEM07.25 0000000126 DEM DEM0284MLT02 500,000,000 271,700,506 06-Feb-1995 13-Oct-1999
-------------
Total By Currency 1,358,502,531
-------------
French Franc
- --------------------------------
BOND/SELL FRF/IBRD/1199FRF08.13 0000000155 FRF FRF0009MLT01 1,500,000,000 235,991,079 24-Nov-1992 24-Nov-1999
-------------
Total By Currency 235,991,079
-------------
Japanese Yen
- --------------------------------
BOND/SELL JPY/IBRD/1200JPY02.50 0000000315 JPY JPY0124MLT01 3,600,000,000 34,980,324 01-Apr-1987 22-Dec-1999
BOND/SELL JPY/IBRD/1199JPY05.70 0000000330 JPY JPY0151MLT01 65,000,000,000 617,841,357 24-Nov-1987 24-Nov-1999
BOND/SELL JPY/IBRD/1199JPY02.30 0000000320 JPY JPY0130MLT01 5,000,000,000 47,290,268 21-Dec-1987 22-Nov-1999
BOND/SELL JPY/IBRD/0400JPY02.30 0000000322 JPY JPY0132MLT01 2,700,000,000 25,247,803 30-Dec-1987 18-Oct-1999
-------------
Total By Currency 725,359,751
-------------
Netherlands Guilder
- --------------------------------
BOND/SELL NLG/IBRD/1000NLG07.25 0000000379 NLG NLG0075MLT01 20,000,000 9,665,972 15-Oct-1985 14-Oct-1999
BOND/SELL NLG/IBRD/1299NLG07.15 0000000382 NLG NLG0090MLT01 100,000,000 46,192,557 22-Dec-1987 21-Dec-1999
-------------
Total By Currency 55,858,529
-------------
New Zealand Dollar
- --------------------------------
BOND/SELL NZD/IBRD/1099NZD06.75 0000000405 NZD NZD0624GMT01 100,000,000 51,055,000 29-Oct-1997 29-Oct-1999
-------------
Total By Currency 51,055,000
-------------
Polish Zloty
- --------------------------------
BOND/SELL PLN/IBRD/1199PLN20.00 0000000419 PLN PLN0621GDI01 100,000,000 23,253,110 06-Nov-1997 08-Nov-1999
-------------
Total By Currency 23,253,110
-------------
United States Dollar
- --------------------------------
BOND/SELL USD/IBRD/1099USD08.38 0000000521 USD USD0228MLT01 1,500,000,000 1,500,000,000 04-Oct-1989 01-Oct-1999
BOND/SELL USD/IBRD/1099USDSTR 0000001098 USD JPY0024GMT01 80,986,320 80,986,320 21-Oct-1996 21-Oct-1999
-------------
Total By Currency 1,580,986,320
-------------
South African Rand
- --------------------------------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABILITY RISK SYSTEM (TALRS)
SEC REPORT--CHANGES IN BORROWINGS
BORROWINGS (MLT) OCTOBER 01, 1999 THRU DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
CUR- EXTERNAL CURRENCY US$ SETTLEMENT MATURITY
BORROWING TYPE DESCRIPTION TRADE ID RENCY ID AMOUNT EQUIVALENT DATE DATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BOND/SELL ZAR/IBRD/1099ZAR12.31 0000000900 ZAR ZAR0702GDI01 250,000,000 40,733,198 10-Jun-1998 27-Oct-1999
-------------
Total By Currency 40,733,198
-------------
-------------
Total 4,722,869,935
-------------
MTBOZ
Australian Dollar
- --------------------------------
BOND/SELL AUD/IBRD/1099AUD00.00 0000000037 AUD AUD0016MLT01 68,000,000 44,081,000 16-Oct-1995 18-Oct-1999
-------------
Total By Currency 44,081,000
-------------
United States Dollar
- --------------------------------
BOND/SELL USD/IBRD/1199USD00.00 0000000741 USD USD1351COL01 49,000 49,000 16-Nov-1989 16-Nov-1999
BOND/SELL USD/IBRD/1299USD00.002 0000000801 USD USD1480COL01 1,000,000 1,000,000 21-Nov-1990 01-Dec-1999
BOND/SELL USD/IBRD/1299USD00.001 0000000829 USD USD1548COL01 1,685,000 1,685,000 28-May-1991 02-Dec-1999
-------------
Total By Currency 2,734,000
-------------
-------------
Total 46,815,000
-------------
</TABLE>
<PAGE>
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TREASURY ASSET LIABILITY RISK SYSTEM (TALRS)
SEC REPORT--CHANGES IN BORROWINGS
BORROWINGS (MLT) OCTOBER 01, 1999 THRU DECEMBER 31, 1999
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
CUR- EXTERNAL CURRENCY US$ SETTLEMENT MATURITY
BORROWING TYPE DESCRIPTION TRADE ID RENCY ID AMOUNT EQUIVALENT DATE DATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Early Retirement
Early Retirement
MTBOC
United States Dollar
BOND/BUY USD/IBRD/0414USDSTR 0000004114 USD 100,000,000 100,000,000 29-Oct-1999 30-Apr-2014
BOND/BUY USD/IBRD/0614USDSTR 0000004168 USD 100,000,000 100,000,000 15-Dec-1999 15-Jun-2014
-------------
Total By Currency 200,000,000
-------------
-------------
Total 200,000,000
-------------
</TABLE>
